Taps Coogan – October 4th, 2022

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As the following chart from Morgan Stanley via Acemaxx Analytics highlights, the Case-Shiller home price index has posted its first month-over-month decline since 2012.

Both the broad index, the 20-city sub-index, and the 10-city sub-index posted month over months declines.

Perhaps the most amazing thing about this chart is not that home prices finally declined, but that they hadn’t posted a single month-over-month decline in a decade.

The latest data in the Case-Shiller index dates to July. Given that mortgage rates have continued to surge higher since July, home prices have probably cooled further and will presumably keep cooling for a while. At least we certainly hope so as unaffordable housing has become a major impediment to family formation and social mobility.

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